HomeMy Public PortalAbout1994_11_21SPECIAL MEETING MINUTES OF NOVEMBER 21, 1994
A special meeting of the Leesburg Town Council was held on Monday, November 21, 1994, at
4:30 p.m., in the Council Chambers, 25 West Market Street, Leesburg, Virginia. Notice having been
delivered to all members of the Leesburg Town Council prior thereto. The purpose of the meeting was
to discuss the Water and Sewer Rate Study. The meeting was called to order by Mayor Clem.
Councilmembers present
(}eorge F. Atwell (absent)
J. Frank Buttery, Jr.
Jewell M. Emswiller
Joseph R. Trocino
Kristen C. Umstattd (absent)
William F. Webb
Mayor James E. Clem
Staff members present
Steven C. Brown, Town Manager
Randolph W. Shoemaker, Director of Utilities
Paul E. York, Director of Finance
Also present were representatives of O'Brien and Gere Engineers.
Mr. Brown stated the town awarded a contract to O'Brien and Gere Engineers to study the town's water
and sewer billing method, the amount of money collected. The last time such a study was prepared was
in 1990 before the bond issue to expand the town's Water Pollution Control Facility (WPCF). The
expansion of the WPCF was a $20 million project. The rate study at that time was to contemplate the
expansion. The results of the rate study were that the town was to have several rate increases over the
course of the next few years. The town has been successful in avoiding some of those increases.
The town's utility fund stands alone and faces the financial pressures that come from being a relatively
small system, $,000 - 6,000 customers, however, must still meet all the regulatory requirements as other
large utility systems must do.
Mr. York introduced Mr. George Rest and Myron Olsteen of O'Brien and Gere Engineers.
Mr. Rest stated that the purpose of this meeting is to get the Council's feelings and experiences with
water and sewer rates and how O'Brien and (}ere should proceed. Mr. Rest described the process to
be taken in preparing the rate study.
Mr. Webb asked what can be done to reduce the cost to the town's water and sewer customers or to not
increase the rates?
Mr. Rest stated a lot of cost reductions involve sound management, conveying good economic
information through the rate structure to the town's users.
Mr. Webb asked if a study would be prepared to determine what the cost should be for new customers -
availability fees?
Mr. Rest stated cost of capacity will be studied which is what the availability fee is paying for. This
calculation will be reviewed to make sure it is appropriate. Another boundary in setting rates is legal
considerations - to make sure the availability fee meets legal tests. A rate study tries to determine how
to meet the given revenue requirement.
Mayor Clem pointed out that the water and sewer bills are astronomical in a new development of the
town which is one of the reasons that have prompted this rate study. It is true that some of the residents
have been over watering their lawns, however, many leaks have been found in this area. We want to be
sure we have a rate study that is fair and equitable for our community.
Mr. Rest stated as far as the sewer rate structure, definite alternatives will be provided. It should answer
a fair number of complaints, however, no system is 100 percent perfect. It looks like a winter quarter
type of billing for sewer would work out very well. It is important to remember that the same revenue
requirements continue to be met.
Mayor Clem referred to the water and sewer account deposit stating the Council is considering refunding
this deposit to the customer once they have established a good credit standing.
Mr. Rest stated he is familiar with the deposit refund policy and would look into the impact of different
approaches.
Mr. trocino stated the town has had a long standing policy of allowing new growth to pay for itself. We
need to find a new way to help new growth pay for itself.
Mr. Webb stated the town does not have its own field inspectors.
County. This Council has discussed hiring its own inspectors.
Mr. Rest stated he would provide alternatives.
They are furnished by Loudoun
Mr. Trocino emphasized restaurants are the hardest hit.
Mayor Clem suggested the possibility of spreading out the fees for a new business over a one or two year
period.
Mr. Trocino asked that comparisons be made with neighboring jurisdictions.
Ms. Emswiller asked if there is a mechanism available where existing businesses would not have to pay
as much as a new business or perhaps the fee could be spread out over a period of time. Ms. Emswiller
asked how other jurisdictions around the United States have handled these problems?
Mr. Rest stated the law regarding availability fees has been well tested around the United States. Some
areas that have very high fees also have partial payment methods or have the option of including it in
the rates.
Mr. Buttery asked if the study will look at the areas of amount of water usage used by apartment
buildings or other large users and whether or not the owners receive a discounted fee?
Mr. Brown explained that the apartments are metered and the owner pays for the amount of water used.
There is no discount.
Mr. Rest stated he will be looking at the different types of housing in the Town of Leesburg to see if a
difference in usages can be identified. Typically, a dwelling unit in an apartment will use less water than
a detached single family dwelling. Multi-family dwellings should have lower bills as a result of the
difference in the patterns of usage. Every person that moves into Leesburg carries with them certain
demands on the system and has to pay for their fair share in order to be fair to everyone.
The meeting was adjourned.
Clerk of Council
ames E. Clem, Mayor
own of Leesburg
CO 11/21/94 spec